• Consumer promotion regulations helps make the transaction field more level for customers.sale 70% off sign. all sale sign. free.cheap price image by L. Shat from Fotolia.com
  
  Consumer promotion regulations, or "advertising laws," have the intent of safeguarding the rights of consumers. These laws make it a requirement for all advertisers to operate honestly and truthfully when advertising their products or services. Regardless of the type of service or product a business offers, they must follow state and federal laws. Failure to adhere to the rules may result in litigation and/or civil penalties.
  
  

Truth-in-Advertising

• The Federal Trade Commission (FTC) requires all business owners to ensure the truthfulness of their advertisements and promotions. Businesses cannot run deceitful promotions to get consumers to call, come into the store or web site, or "bait and switch." Besides fair advertising, businesses must have the ability to back-up claims made about their products or services.
  
  

Unfair or Deceptive Advertising

• Unfair advertising rules have the primary objective of protecting consumers from practices that may lead to health or safety issues or financial loss. The FTC and most states have regulations that enable them to bring lawsuits to stop unfair promotional practices. Some examples of false or unfair advertising include fake testimonials or contrived product endorsements. Making false statement about the ingredients in a product or the effectiveness of certain services may also constitute unfair advertising.
  
  

Deceptive Pricing Practices

• Unfair or deceptive pricing comes in a variety of forms. This regulation dictates practices that businesses may not engage in, such as acting as though an item is on sale by stating it normally sell at a higher price. The product must have actually sold at the so-called "regular" price during a recent period. Businesses may not promote a product at a specific price to motivate customers to come in, and make it a requirement to buy another product to get the advertised price.
  
  

Complaints

• Businesses or consumers who believe a company engages in unfair or deceitful promotional practices may contact Federal Trade Commission's Consumer Response Center. In addition, consumers may file complaint with their state's consumer protection agency or the Attorney General's Office.
  
  

Penalties

• The Federal Trade Commission or the courts may impose a wide range on penalties on businesses that violate consumer promotion regulations. Cease and desist orders require companies to immediately stop the deceptive promotion. The company may have to provide proof for the claims made in the ad and to periodically report to the FTC. Subsequent violations of the regulation may result in a fine as high as $16,000 per day.
  
  Violators may have to give partial or full refunds to consumers. The civil fines run anywhere from thousands of dollars to multimillion dollar damages, depending on the egregiousness of the infraction. Sometimes, the FTC requires advertiser to initiate corrective advertising to set straight the deceitful information or to provide customers with more information about a product or service.